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Canola producer says Chinese restrictions could bring shipping to ‘screeching halt’

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Canola producer says Chinese sanctions will ‘bring the process to screeching halt’
Canola producer says Chinese sanctions will ‘bring the process to screeching halt’ – Aug 30, 2016

A southern Alberta canola farmer and producer is speaking out against Chinese trade restrictions on the seed. The Chinese government is giving Canada until Thursday to cut the level of foreign material in its canola deliveries by more than half. It’s a decision that is not sitting well with managing partner of Serfas Farms Kevin Serfas.

“We’re working with a seed that’s basically the size of a poppy seed,” Serfas said. “And what they’re asking us to do is to take four million tons of it and ram it through screens that are smaller than that.”

Serfas, who is also a director with the Alberta Canola Producers, believes the move will create a very challenging screening process.

“It’s going to back up everything,” Serfas said. “It’s going to affect wheat, barley, peas, anything that we’re trying to ship into port. What may end up happening is grain companies will say, ‘you know what? We don’t want the canola because we want to move other products.”

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China’s concern lies in the amount of blackleg on the Canadian canola, which they believe could spread to Chinese crops.

The disease can cause the plant to be unable to uptake water and nutrients properly. But that’s not what Serfas believes the sanctions are about.

“There’s a thought process that they’re probably trying to use this blackleg issue as a way to keep some of their domestic prices up,” Serfas said.

Prime Minister Justin Trudeau is in China this week to speak with the country’s officials about a number of issues. The Canadian camp is making canola one of its top priorities.

“We’ve made clear to our Chinese counterparts and I think they’ve heard us, how central the canola issue is,” Canadian Minister of International Trade Chrystia Freeland said. “It’s our second-largest trading product with China. This is a big deal for Canada.”

If the dispute isn’t solved, Serfas believes you won’t see much canola shipped.

“What they’re asking us to do is to take it (dockage) down to one per cent, which is almost going to bring the process to a screeching halt,” Serfas said.

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